Integrated regulation of nonpoint pollution : combining managerial controls and economic instruments under multiple environmental targets

Aftab, Ashar; Baiocchi, Giovanni; Hanley, Nick

Integrated regulation of nonpoint pollution : combining managerial controls and economic instruments under multiple environmental targets

Aftab, Ashar; Baiocchi, Giovanni; Hanley, Nick

Authors

Dr Ashar Aftab ashar.aftab@durham.ac.uk
Associate Professor

Giovanni Baiocchi

Nick Hanley

Abstract

Regulators are often reluctant to rely solely on economic incentives to achieveenvironmental standards. We evaluate a "mixed approach" of economic instruments andmanagement standards when two environmental objectives need to be met simultaneously:minimum river flow rates and reductions in nitrate pollution. We show how the relativeefficiency of such mixed approaches can depend on exogenous factors, in this case weatherconditions. Results indicate that mixed instruments outperform stand-alone economicincentives or managerial controls under wet weather conditions, but not in 'average' years.However, the relative cost-effectiveness of mixed approaches increases considerably at higher levels of environmental standard compliance.

Citation

Aftab, A., Baiocchi, G., & Hanley, N. (2009). Integrated regulation of nonpoint pollution : combining managerial controls and economic instruments under multiple environmental targets

Publication Date	Dec 1, 2009
Deposit Date	Dec 7, 2012
Publicly Available Date	Dec 7, 2012
Series Title	Durham University Business School Economics Finance Accounting Working Papers
Keywords	Diffuse water pollution, Environmental regulation, Minimum river flow, Mixed instruments, Nonpoint pollution.
Public URL	https://durham-repository.worktribe.com/output/1699664
Publisher URL	http://www.dur.ac.uk/business/faculty/working-papers/